You are here: Home » Wealth Tips » Is Network Marketing And A Pyramid Scheme The Same Scams?

Is Network Marketing And A Pyramid Scheme The Same Scams?

Alberto Rendon| August 4, 2017

We need to understand what network marketing is all about. Take note! Not all Network marketing is a pyramid scheme. Pyramid Schemes and Network Marketing are two separate things.

Do your research on your company, I would choose one that is a part of the Direct Selling Association. The Direct Selling Association is a governing independent body who reviews new businesses in the industry to ensure they follow the guidelines and code of ethics within the industry.

Most of the supreme courts throughout the world have judged Network Marketing to be a legal, ethical and professional occupation.

Whether you can take advantage of network marketing depends on you.

Network Marketing Has A Good Quality Products

Pyramid schemes are programs without physical products and they promise that other people will put in money that you will, you get rich. A pyramid is strictly a money game and has no basis in real commerce.

Normally, there’s no product involved at all, just money changing hands. Modern-day pyramids may have a product, but it’s clearly there just to disguise the money game.

A pyramid scam is a business model where you earn money primarily from bringing other people into the business rather than selling real products of good products.

Networking is a marketing system. It is not by itself a business. As a marketing or sales system, networking has proved to be quite effective for selling certain types of products and services directly to the consumer. It bypasses media advertising and is usually via word of mouth.

There have been more millionaires produced within the Network Marketing industry than any other industry in history.

So in my opinion, it’s a fantastic option to venture into.

Network Marketing Structure

The structure might be as a pyramid. It has the CEO / Chairman at the top, then President, VPs, managers, supervisors, and then the actual workers.

Government at all levels is a pyramid. Organized religions/denominations are pyramidal in structure. Just about any organization or business is a pyramid. Bottom line, we are dealing with pyramidal structures every day.

The difference in network marketing is everyone at all levels is equal. Everyone is their own boss and owner of their own business.

My up lines and my down lines are my partners. I am not their employee nor are they my employee. I have no boss and I am not their boss. It is a total freedom to run our business we want. I am here to assist my down line partners in whatever manner they ask help, it is up to them to ask.

Each one is responsible for their business, just as I am for mine. Network Marketing may looks like a pyramidal structure but not the design, and is the only way it is a pyramid.

The Legitimacy of Network Marketing

Here are the differences:

Network marketing is a legitimate business. It is based on providing people with real, legitimate good quality products they need and want at a fair price.

On this system, some people can make a lot of money as a result of their own dedicated efforts in building an organization that sells real products and services.

While a pyramid structure without real products is illegal and is only based on taking advantage of people. For a person to actually make money in a pyramid scheme, someone else has to lose money. That’s what it makes scam.

In network marketing, each person can multiply his or her efforts, skills and talents by helping others to be successful. It proved itself as part of the new economy and a preferred way to do business anywhere around the world.

The Opportunities in Network Marketing

Network marketing isn’t about taking advantage of your friends and relatives. Although sharing the products or services and the opportunity to people you know is still the basic foundation of the business.

Today we see more people using different marketing techniques on the Internet, conducting conferences for orientations, sponsoring techniques to extend their network marketing.

Network marketing isn’t easy as a get-rich-quick scheme in a pyramid scam. Although some people have made large amounts of money very quickly, the basis is from their efforts and investments.

Success in network marketing is based on some very basic yet dynamic principles.

It is a serious business for serious people. It’s a proven system where the design, creation, and expense the corporate team has gone through becomes a road map for your own success. Just follow the simple, proven and duplicable system that the good companies provide.

By helping the people you personally sponsor to sponsor others, you duplicate yourself. As this process continues, you create compound growth that can lead to hundreds or even thousands of people coming into your business. You leverage your time by helping others be successful and earn an income from all their efforts.

In Closing

With network marketing, has no big capital requirements, it has no geographical limitations, and it has no special education or skills needed.

In most cases, network marketing is a people-to-people business that can significantly expand your circle of friends. It’s a business that enables you to travel and have fun as well as enjoy the lifestyle that extra income can provide.